Another IRS Boss Walks Out After Trump Admin Moves to Share Illegals’ Tax Data [WATCH]

Melanie Krause, the acting commissioner of the Internal Revenue Service (IRS), is stepping down from her role following the announcement of a new data-sharing agreement between the Department of the Treasury and the Department of Homeland Security (DHS) regarding undocumented immigrants.

Krause, the third person to serve as acting chief of the IRS since the beginning of the year, is expected to resign under the Trump administration’s deferred resignation program, the Treasury Department confirmed Tuesday.

WaPo is reporting that Melanie Krause, the acting head of the IRS, is RESIGNING over a new agreement where the IRS will share tax data of illegal aliens with DHS personnel. pic.twitter.com/sV75yvdp9H

— Libs of TikTok (@libsoftiktok) April 8, 2025

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Her departure comes just days before the deadline for individual tax returns.

The IRS recently finalized a deal that enables it to share tax data with immigration authorities.

The agreement, signed Monday by Treasury Secretary Scott Bessent and DHS Secretary Kristi Noem, allows DHS to request information on individuals who are under criminal investigation or have active deportation orders.

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The IRS will then be responsible for providing relevant taxpayer data already in its possession.

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– Now that the DHS has requested information from The IRS, all the sudden the mainstream is talking about illegals being given ITIN numbers
– They admit… pic.twitter.com/A3ybWDKYUN

— Wall Street Apes (@WallStreetApes) February 23, 2025

The signing of the deal bypassed Krause, despite her leadership position at the agency, according to the Washington Post.

A Treasury Department spokesperson praised Krause for her leadership during a time of transition.

“Melanie Krause has been leading the IRS through a time of extraordinary change,” the spokesperson said.

“The department is in the midst of breaking down data silos that for too long have stood in the way of identifying waste, fraud, and abuse and bringing criminals to justice.”

Sources told the Washington Post that Krause’s resignation appears to be in response to the administration’s decision to proceed with the data-sharing agreement without her direct involvement.

🚨BREAKING: US IRS chief RESIGNING after refusing to share criminal alien tax information with ICE.

Investigate her. pic.twitter.com/gGUu6Vd0xo

— Benny Johnson (@bennyjohnson) April 9, 2025

The agreement is part of a broader effort by the Trump administration to improve interagency cooperation.

“Under President Trump’s leadership, the government is finally doing what it should have done all along: sharing information across the federal government to solve problems,” said DHS spokesperson Tricia McLaughlin on Tuesday.

Under @POTUS Trump’s leadership, the government is finally doing what it should have all along: sharing information across the federal government to solve problems. pic.twitter.com/zIqVsAMKgT

— Homeland Security (@DHSgov) April 8, 2025

This is not the first resignation linked to the Treasury’s push for interdepartmental data-sharing.

Doug O’Donnell, who previously served as acting IRS chief, also stepped down in February following an earlier attempt to implement a similar agreement with DHS.

The most recent Senate-confirmed IRS commissioner, Danny Wefel, left the position on President Trump’s first day in office.

Attorneys within the IRS have reportedly raised concerns about the legality of the data-sharing arrangement, citing possible violations of taxpayer privacy laws.

The Washington Post reported that legal opinions within the agency questioned whether the agreement complies with existing federal privacy protections.

In parallel with the changes in leadership, the IRS has also begun implementing a major workforce reduction.

Last Friday, the agency initiated a new round of layoffs aimed at reducing staff by 25%, according to reports.

The agreement between Treasury and DHS is expected to apply specifically to illegal aliens already facing deportation proceedings and those under criminal investigation, rather than to all illegal aliens.

Krause’s resignation marks yet another leadership shift at the IRS amid ongoing restructuring efforts and a broader reorientation of priorities under the Trump administration.

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